Surge in foreign firms registering in India, Aviation and Engineering lead

59 foreign companies registered in India in FY24, up from 50 in FY23

June 14, 2024

Notable entries include Italia Transporto Aereo, SalamAir, and Uganda National Airlines

Engineering firms like Switzerland’s Pini Group and Japan’s Dainichi Consultant have also set up operations

Significant foreign investment is seen in IT, consulting, electronics, and education sectors

The government’s increased capital expenditure boosts demand for engineering and construction services

Airlines and engineering companies are at the forefront of foreign businesses entering the Indian market, according to the government’s database of new business registrations for FY24. Notable entrants include Italy’s national airline Italia Transporto Aereo, Oman’s SalamAir, and Swiss engineering firm Pini Group SA.

The Ministry of Corporate Affairs reported 59 foreign companies registered in India during FY24, an increase from 50 in the previous year. Other sectors witnessing foreign interest include IT and consulting, electronics, and education.

Italia Transporto Aereo began operations in India on 1 June 2023. SalamAir, incorporated in Oman, established its Indian presence in April 2023 and announced new flights to Delhi starting 2 July 2024. Uganda National Airlines also started Indian operations on 10 September 2023.

Airbus Defence and Space SA, originally from Spain, commenced operations in India last July. The company contributes significantly to Spain’s economy, with substantial spending and export generation. Vietnam Airlines also entered the Indian market in January 2024.

Analysts attribute this influx to strong demand and stable growth in India’s aviation sector, with significant passenger traffic increases. In the first quarter of 2024, 8.5 million people travelled to India, compared to seven million in the same period the previous year. Outbound travel also increased, with 9.3 million people flying out from India compared to 8.1 million the previous year.

The International Air Transport Association’s December 2023 report forecasts rapid growth in passenger traffic in the Asia Pacific region, which is expected to dominate global passenger demand by 2040.

Engineering and construction firms are also expanding in India, driven by the government’s heightened capital expenditure. Japan High Speed Rail Electric Engineering Co Ltd, in partnership with the National High Speed Rail Corp Ltd, is involved in the Mumbai-Ahmedabad bullet train project. US-based Modjeski and Masters and Switzerland’s Pini Group have also established operations in India.

Aviation sector investment includes airlines, maintenance, repair, and overhaul (MRO) services, and airport infrastructure. Kathmandu-based Mavahir Shree International Pvt. Ltd., specialising in airport runway construction, began operations in India in April 2023.

Source: Mint

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